Brothers
be united...
…because that is the first law. Have a true union at any time, because if they fight among themselves, they will be devoured by outsiders. Saying of the gaucho Martín Fierro de José Hernández.
Argentina, Bolivia, and Chile seek an agreement to set a common reference price for lithium, a global wealth that these countries share. It is estimated that the reserves of the three countries reach between 50-65% of the global availability. The agreement also seeks to include "a manual of good practices" that contemplates the impact of extraction on the environment.
The price of lithium now constantly oscillates arbitrarily, climbing from $9,720 at the end of May 2021 to $73,000 today. This
creates uncertainty and volatility. If an agreement is reached between the countries of the so-called lithium triangle, it is expected that Australia –the world's leading producer– could join and thus stabilize the price.
But the project entails another possibility for these three countries, that of becoming battery producers. This market is dominated by South Korea, Japan, and China. The European Union and the US are investing billions of dollars to develop lithium-ion production.
The cards are drawn, the wealth is real, it only remains to be seen who will benefit from the extraction and production; or in the words of Martín Fierro if we will again be devoured by outsiders.